Litecoin (LTC) Price Jumps 7% as Spot Litecoin ETF Makes an Appearance on DTCC List

Canary Capital's spot Litecoin exchange-traded fund has made an appearance on a list maintained by the Depository Trust and Clearing Corporation (DTCC).

Canary Capital’s application for a spot Litecoin (LTC) exchange-traded fund has been added to a list maintained by the Depository Trust and Clearing Corporation (DTCC).

The DTCC plays a pivotal role in global financial markets, processing trillions of securities transactions daily. According to the Litecoin Foundation, this listing marks “a key preparatory step for the fund’s potential launch.”

The DTCC has listed Canary Capital’s LTC fund under the ticker LTCC. While the fund still awaits approval from the U.S. Securities and Exchange Commission, Litecoin could become the first crypto beyond Bitcoin and Ethereum to secure a spot ETF in the United States if the SEC gives the green light.

Canary Capital filed for a spot LTC ETF in October 2024, joining a queue of applicants that includes Grayscale and Coinshares. Among these applications, Canary’s is expected to be the first to receive a decision from the Securities and Exchange Commission.

“Doesn’t mean it’s approved or ready to start trading, but it does show the issuer is making preparations for when it is,” Bloomberg senior ETF analyst Eric Balchunas wrote in an X post.

Following the DTCC listing, LTC prices surged by around 7%, rising from an intraday low of $126.5 to $138.52 before retracing slightly to $135 at the time of publication, based on data from CoinGecko.

According to a Feb. 21 post on X, Santiment observed that Litecoin’s market capitalization increased by 45% from Feb. 2 to 19, indicating growing investor demand.

Moreover, the Litecoin network has seen a substantial rise in network utility. In particular, daily transactions on the Litecoin network have reached $9.6 billion per day.

What’s driving this? ETF hype. “There is clear growing excitement around a potential Litecoin ETF, 13 months after Bitcoin’s first ETFs were approved by the SEC,” Santiment wrote.

Besides the Canary ETF, the Securities and Exchange Commission also recently acknowledged a proposal to list the CoinShares Litecoin fund on the Nasdaq.

Meanwhile, Bloomberg’s Balchunas maintains that the odds for a spot LTC ETF securing approval this year were still at 90%.